We spoke to a financial advisor to clarify who would benefit from whole life insurance policies, who wouldn’t, and what’s important to know going in
The financial advisor got to know them, exploring their financial goals, tolerance for risk, and investment knowledge. He helped them diversify their investment portfolio with multiple types of investments, max out contributions to retirement accounts, and explore various wealth-building and tax-planning strategies.
He also suggested that they consider permanent life insurance, such as whole life insurance, as an additional tool for securing their financial future.
The term whole life insurance is commonly bandied about, but often without a deeper understanding of how it works or what makes a good candidate for such a policy. Let’s examine several scenarios involving couples who purchased such whole life polices, contrasting the ones who made informed decisions with the others who made mistakes and could have secured their futures more wisely otherwise.
Unlike term insurance, which lasts for a specific number of years (the “term”), whole life was designed to last an entire (whole) life, with the specified beneficiaries receiving a death benefit when the insured passes away.
Create a free account to keep reading.
